COMPETITIVENESS
Lecture Outline
The relationship between Quality and Competitiveness Cost of Poor Quality Impact of Competitiveness on Quality of Life
Factors Inhibiting Competitiveness Comparisons of International Competitors Industrial Policy and Competitiveness Technology and Competitiveness
Lecture Outline
Human Resources and Competitiveness Characteristics of World-Class Organizations E-Commerce, Information Quality, and Competitiveness Management by Accounting: Antithesis of Total Quality Key Global Trends Global Companies: Strengths and Weaknesses
In business, the competition is now moved from local, regional or national level to International level, which is making it tougher day by day. Now only those companies who are able to produce world-class quality can compete at international level.
It is extremely important for a countrys business to be able to compete globally. When they cant, jobs are lost and the quality of life in that country declines correspondingly.
Traditional Costs
Hidden Costs
1. Identify all activities that exist only or primarily because of poor quality. 2. Decide how to estimate the costs of these activities. 3. Collect data on these activities and make the cost estimates. 4. Analyze the results and take necessary corrective actions in the proper order of priority. Improvements in product or service features can lead to higher market share at a better price, which, of course, means higher revenue.
Emphasis on short-term profits fed by fear of unfriendly takeover attempts and pressure from lenders or shareholders.
To overcome these business-related inhibitors, it requires business and government to work together in a positive, constructive partnership to enact policies that will reduce the non-value added costs to a minimum.
Human resources are a critical part of the competitive equation. The more knowledgeable, skilled, motivated, and able to learn members, the better the labor pool will be. Family background play an important role in basic education of the kids. The countries with strong family values are found to be better in educating their kids and hence producing knowledgeable and smart workers.
The quality of a countrys education system is a major determinant of the quality of its labor pool. The higher the quality of the labor pool, the higher the quality of entrylevel employees.
1. Customer service. 2. Quality control and assurance. 3. Research and development/ new product development 4. Acquiring new technologies 5. Innovation 6. Team-based approach (adopting and using effectively) 7. Best practices (study and use of) 8. Manpower planning
Environmentally sound practices Business partnerships and alliances Reengineering of processes Mergers and acquisitions Outsourcing and contracting Reliance on consulting services Political lobbying
6. Conflict resolution
7. Employee satisfaction 8. Flextime arrangements 9. Management-employee-union relations 10. Child care
3. Customization strategies (building to order, customized mass production, global sourcing and manufacturing, etc.) 4. Electronic commerce strategies (supply management, Internet ordering, status and availability tracking by Internet) 5. Compensation systems (product profitability, inventory levels, manufactured/delivered costs per unit, worker productivity, employee retention rates, etc.)
Management by accounting Managing an organizations financial results instead of managing the people and process that produce those results.
SUMMARY
AND QUESTIONS